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African Gem Resources Limited - Dual listing update and acquisition
African Gem Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/007292/06)
Share code: AFG
ISIN: ZAE000025540
CUSIP code (Level 1 ADR programme): 008283103
("Afgem" or "the company")
Dual listing update and acquisition
Dual listing update
In line with the stated intention in the 2002 Annual Report (see `Chief
Executive`s Review`) and in accordance with the company`s objectives to:
i) expand the existing shareholder base,
ii) afford Tanzanian`s the opportunity to have a shareholding in
Afgem, and
iii) simplify the existing company structure,
Afgem has received approval, inter alia, from the South African Reserve Bank for
a dual listing on the Dar es Salaam Stock Exchange ("DSE"), Tanzania.
The Tanzanian government has yet to issue policy guidance on the participation
of foreign domiciled dual listed companies on the DSE. It is expected that such
guidance and approval will be formulated during 2003, whereupon Afgem will
proceed with the dual listing.
Afgem is in the process of internally restructuring certain parts of the group
in order to optimise financial efficiencies and to consequently unlock value.
The benefits of the restructuring will only be evident in the 2004 financial
year and will have little or no effect on the 2003 results.
Acquisition
In line with its aim to simplify the existing company structure, Afgem has
acquired 10% of the issued share capital of Merelani Mining Limited ("MML"), a
Tanzanian registered subsidiary company of Afgem, from Tanzania Development
Finance Company Limited for a cash consideration of US$550 000 (equivalent to
approximately R4,9 million)("the acquisition"). At the time of dual listing onto
the DSE it is proposed that a number of Afgem ordinary shares, at least
equivalent to the acquisition value, will be made available to Tanzanian
citizens and institutions for subscription. This will afford Tanzanians the
opportunity of acquiring a shareholding in Afgem and will also ensure that an
adequate number of shares are made available for trading purposes in the
Tanzanian market.
All acquisition conditions have been satisfied and the acquisition, which is
effective from 1 October 2002, has increased Afgem`s equity holding in MML to
85%. While the acquisition constitutes less than 2% of Afgem`s market
capitalisation, it is published on SENS in accordance with Afgem`s corporate
governance policy of full disclosure of all important corporate actions and
events.
Johannesburg
21 February 2003
Attorneys
H R Levin
Sponsor
HSBC
Date: 21/02/2003 05:10:00 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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